79R2548 PAM-D

By:  Shapiro                                                      S.B. No. 1391


A BILL TO BE ENTITLED
AN ACT
relating to reporting requirements for public primary and secondary schools relating to funding of certain programs for students at risk of dropping out of school. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Subchapter A, Chapter 7, Education Code, is amended by adding Section 7.011 to read as follows: Sec. 7.011. STATEWIDE FUNDS MANAGEMENT INFORMATION SYSTEM FOR AT-RISK STUDENT SERVICES. (a) In this section, "student at risk of dropping out of school" has the meaning described by Section 29.081. (b) The agency shall develop a management information system for funds awarded and allocated to school districts and open-enrollment charter schools for the purpose of providing services to students at risk of dropping out of school. (c) The funds management information system must produce complete, accurate, and timely reports for agency officials and policy makers. The reports must provide information on funding for services for students at risk of dropping out of school, statewide and aggregated by school district, including the following information: (1) the amount of an award; (2) the beginning and ending period of a grant or award; (3) expenditures related to an award; and (4) any amount of an award that was not distributed or was returned because of a school district's failure to comply with grant conditions. (d) The commissioner shall adopt rules as necessary to administer this section. The rules adopted under this subsection must ensure that: (1) the funds management information system includes: (A) the information described by Subsection (c) for all funding sources for services described by Section 29.092 for students at risk of dropping out of school, excluding funding information relating to a compensatory, intensive, or accelerated instruction program under Section 29.081, a disciplinary alternative education program established under Section 37.008, or a program eligible under Title I of the Elementary and Secondary Education Act of 1965, as provided by Pub. L. No. 103-382; and (B) all state funds and federal pass-through funds targeting students at risk of dropping out of school; (2) the system is compatible with and is regularly reconciled with the agency's central accounting system; and (3) aggregate funding information is readily available to agency personnel and policy makers, including aggregate funding information relating to a compensatory, intensive, or accelerated instruction program under Section 29.081, a disciplinary alternative education program established under Section 37.008, or a program eligible under Title I of the Elementary and Secondary Education Act of 1965, as provided by Pub. L. No. 103-382. SECTION 2. Section 28.006(j), Education Code, is amended to read as follows: (j) No more than 15 percent of the funds certified by the commissioner under Subsection (i) may be spent on indirect costs. The commissioner shall evaluate the programs that fail to meet the standard of performance under Section 39.051(b)(9) [39.051(b)(7)] and may implement sanctions under Subchapter G, Chapter 39. The commissioner may audit the expenditures of funds appropriated for purposes of this section. The use of the funds appropriated for purposes of this section shall be verified as part of the district audit under Section 44.008. SECTION 3. Subchapter C, Chapter 29, Education Code, is amended by adding Sections 29.092, 29.093, and 29.094 to read as follows: Sec. 29.092. CONSOLIDATED FUNDING FOR PROGRAMS AND SERVICES FOR STUDENTS AT RISK OF DROPPING OUT OF SCHOOL. (a) In this section, "student at risk of dropping out of school" has the meaning described by Section 29.081. (b) To enable school districts and open-enrollment charter schools to provide supplemental programs and services for the benefit of students at risk of dropping out of school, the commissioner each school year shall award funds to a school district or open-enrollment charter school in accordance with a streamlined and simplified competitive grant process developed by the commissioner and modeled on the application and reporting requirements under Title I of the Elementary and Secondary Education Act of 1965, as provided by Pub. L. No. 103-382, as those requirements existed May 1, 2005. (c) The commissioner shall consolidate funding from the following currently funded programs and types of services, excluding early childhood care and education programs and accelerated reading or mathematics initiatives under Section 28.006, 28.007, or 28.0211: (1) an optional extended year program under Section 29.082; (2) a basic skills program for high school students under Section 29.086; (3) an accelerated reading or math initiatives program under Section 28.006, 28.007, or 28.0211 for students of limited English proficiency; (4) a summer school program of instruction for students of limited English proficiency; (5) a Texas Grants to Reduce Academic Dropouts program; (6) a grant for pregnancy-related services, including a pregnancy, education, and parenting program; and (7) a grant to improve student achievement through the investment capital fund program. (d) A school district or open-enrollment charter school that receives an award of funds under this section may use the funds to provide academic and support services to students at risk of dropping out of school, including: (1) services designed to provide intensive academic instruction to increase student success and high school completion; (2) services designed to provide intensive academic instruction for and reduce the dropout rate of students at risk of dropping out of school; (3) after-school academic and support services; (4) intensive instruction for preschool and school–age students of limited English proficiency; (5) any academic or support services for pregnant or parenting students, including basic instruction and health and life skills training and support for pregnant or parenting students; (6) community-based services designed to address the needs of students at risk of dropping out of school; (7) programs or services designed to promote the involvement of parents of students at risk of dropping out of school; and (8) services or programs promoting school and community collaboration to restructure schools for the successful achievement of all students, especially students at risk of dropping out of school. (e) The agency shall provide research-based guidance to districts and open-enrollment charter schools that successfully implement the academic support services described by Subsection (c) that assist students at risk of dropping out of school succeed in school. (f) Not later than November 1 of each year, a school district or open-enrollment charter school may submit an application for funding for programs or services under this section. The school district or open-enrollment charter school must include an assessment of needs for students at risk of dropping out of school, a comprehensive plan for providing services for those students based on the agency's research-based implementation guidance provided under Subsection (e), and a report of all sources of funding for providing services for those students. The commissioner shall distribute an award of funds in the form of a block grant not later than March 15 of each year. Sec. 29.093. COST-OUTCOME ANALYSIS. (a) The agency and the Legislative Budget Board shall jointly develop a cost-outcome analysis methodology for use in assessing the effectiveness of school districts and open-enrollment charter schools in providing services for students at risk of dropping out of school, as described by Section 29.081. The cost-outcome analysis methodology developed under this section is subject to review and comment by the state auditor. (b) The methodology required by this section must include the following components: (1) a composite performance measure that combines key indicators of student performance, disaggregated for students at risk of dropping out of school; (2) a format for reporting all state, federal, local, and private sources of funding and total expenditures for supplemental services for students at risk of dropping out of school, reported by school district, by open-enrollment charter school, and statewide; (3) a benchmark ratio of the cost of a specified amount of improvement in the composite performance measure, provided that the ratio may vary by peer group or region; and (4) a system for scoring and ranking school districts and open-enrollment charter schools, including criteria for establishing school district and open-enrollment charter school peer groups for comparison purposes. Sec. 29.094. BEST PRACTICES FOR AT-RISK STUDENT SERVICES. (a) Not later than May 1, 2006, the agency shall: (1) jointly develop the components of the cost-outcome analysis methodology as provided by Section 29.093, including the initial benchmark ratio for the cost of a specified amount of improvement in the composite performance measure; and (2) report the methodology and the benchmark ratio to the Legislative Budget Board, the state auditor, the lieutenant governor, the speaker of the house of representatives, and the presiding officers of the standing committees of each house of the legislature with primary jurisdiction over public education. (b) Using the benchmark ratio and cost-outcome analysis methodology developed under Subsection (a), the agency shall perform a cost-outcome analysis to assess the effectiveness of school districts and open-enrollment charter schools during the 2005-2006 school year in providing services to students at risk of dropping out of school, as described by Section 29.081. (c) Immediately following completion of the cost-outcome analysis under Subsection (b), the commissioner shall: (1) identify school districts and open-enrollment charter schools that offered the most cost-effective services during the 2005-2006 school year for students at risk of dropping out of school, identify the factors and practices contributing to those cost-effective services, and distribute information relating to those factors and practices to each school district in the same peer group for purposes of improvement during the 2006-2007 school year; (2) identify school districts and open-enrollment charter schools that did not use funds effectively in providing services for students at risk of dropping out of school during the 2005-2006 school year; and (3) provide guidance and assistance to the school districts identified under Subdivision (2) during the 2006-2007 school year to improve those services. (d) This section expires September 1, 2008. SECTION 4. Section 39.051(b), Education Code, as amended by Chapters 433 and 805, Acts of the 78th Legislature, Regular Session, 2003, is reenacted and amended to read as follows: (b) Performance on the indicators adopted under this section shall be compared to state-established standards. The degree of change from one school year to the next in performance on each indicator adopted under this section shall also be considered. The indicators must be based on information that is disaggregated by race, ethnicity, gender, [and] socioeconomic status, and a student's status as a student at risk of dropping out of school, as described by Section 29.081, and must include: (1) the results of assessment instruments required under Sections 39.023(a), (c), and (l), aggregated by grade level and subject area; (2) dropout rates, including dropout rates and district completion rates for grade levels 9 through 12, computed in accordance with standards and definitions adopted by the National Center for Education Statistics of the United States Department of Education; (3) high school graduation rates, computed in accordance with standards and definitions adopted in compliance with the [federal] No Child Left Behind Act of 2001 (Pub. L. No. 107-110); (4) student attendance rates; (5) the percentage of graduating students who attain scores on the secondary exit-level assessment instruments required under Subchapter B that are equivalent to a passing score on the assessment [test] instrument required under Section 51.3062 [51.306]; (6) the percentage of graduating students who meet the course requirements established for the recommended high school program by State Board of Education rule; (7) the results of the Scholastic Assessment Test (SAT), the American College Test (ACT), articulated postsecondary degree programs described by Section 61.852, and certified workforce training programs described by Chapter 311, Labor Code; (8) the number and percentage of students at risk of dropping out of school, the number and percentage of those students who are administered each assessment instrument required under Section 39.023, the number and percentage of those students who perform satisfactorily on the assessment instruments, and the results of those students, grouped by number and percentage, on the assessment instruments, disaggregated by subject area and grade level; (9) the number and percentage of students, aggregated by grade level, provided accelerated instruction under Section 28.0211(c), the results of assessments administered under that section, the percentage of students promoted through the grade placement committee process under Section 28.0211, the subject of the assessment instrument on which each student failed to perform satisfactorily, and the performance of those students in the school year following that promotion on the assessment instruments required under Section 39.023; (10) [(9)] for students who have failed to perform satisfactorily on an assessment instrument required under Section 39.023(a) or (c), the numerical progress of those students grouped by number and percentage on subsequent assessment instruments required under those sections, aggregated by grade level and subject area; (11) [(10)] the percentage of students exempted, by exemption category, from the assessment program generally applicable under this chapter; [and] (12) [(11)] the percentage of students of limited English proficiency exempted from the administration of an assessment instrument under Sections 39.027(a)(3) and (4); and (13) the percentage of students in a special education program under Subchapter A, Chapter 29, assessed through assessment instruments developed or adopted under Section 39.023(b). SECTION 5. Section 39.051(d), Education Code, is amended to read as follows: (d) Annually, the commissioner shall define exemplary, recognized, and unacceptable performance for each academic excellence indicator included under Subsections (b)(1) through (7) [(6)] and shall project the standards for each of those levels of performance for succeeding years. For the indicators [indicator] under Subsections (b)(8), (9), and (10) [Subsection (b)(7)], the commissioner shall define exemplary, recognized, and unacceptable performance based on student performance for the period covering both the current and preceding academic years. In defining exemplary, recognized, and unacceptable performance for the indicators under Subsections (b)(2) and (4) [(3)], the commissioner may not consider as a dropout or as a student who has failed to attend school a student whose failure to attend school results from: (1) the student's expulsion under Section 37.007; and (2) as applicable: (A) adjudication as having engaged in delinquent conduct or conduct indicating a need for supervision, as defined by Section 51.03, Family Code; or (B) conviction of and sentencing for an offense under the Penal Code. SECTION 6. Section 39.052(b), Education Code, is amended to read as follows: (b) The report card shall include the following information: (1) where applicable, the academic excellence indicators adopted under Sections 39.051(b)(1) through (13) and specifically including the indicators adopted under Sections 39.051(b)(8) and (9); (2) average class size by grade level and subject; (3) the administrative and instructional costs per student, computed in a manner consistent with Section 44.0071; and (4) the district's instructional expenditures ratio and instructional employees ratio computed under Section 44.0071, and the statewide average of those ratios, as determined by the commissioner. SECTION 7. Section 39.053(a), Education Code, is amended to read as follows: (a) Each board of trustees shall publish an annual report describing the educational performance of the district and of each campus in the district that includes uniform student performance and descriptive information as determined under rules adopted by the commissioner. The annual report must also include: (1) campus performance objectives established under Section 11.253 and the progress of each campus toward those objectives, which shall be available to the public; (2) the performance rating for the district as provided under Section 39.072(a) and the performance rating of each campus in the district as provided under Section 39.072(c); (3) the district's current special education compliance status with the agency; (4) a statement of the number, rate, and type of violent or criminal incidents that occurred on each district campus, to the extent permitted under the Family Educational Rights and Privacy Act of 1974 (20 U.S.C. Section 1232g); (5) information concerning school violence prevention and violence intervention policies and procedures that the district is using to protect students; [and] (6) the findings that result from evaluations conducted under the Safe and Drug-Free Schools and Communities Act [of 1994] (20 U.S.C. Section 7101 et seq.) and its subsequent amendments; [and] (7) information received under Section 51.403(e) for each high school campus in the district, presented in a form determined by the commissioner; and (8) the district's composite performance measure of progress in serving students at risk of dropping out of school and the results of the district's cost-outcome analysis, computed using the cost-outcome analysis methodology under Section 29.093(b)(1), to assess district effectiveness in serving students at risk of dropping out of school, as described by Section 29.081. SECTION 8. Sections 39.072(b) and (c), Education Code, are amended to read as follows: (b) The academic excellence indicators adopted under Sections 39.051(b)(1) through (9) [(7)] and the district's current special education compliance status with the agency shall be the main considerations of the agency in the rating of the district under this section. Additional criteria in the rules may include consideration of: (1) compliance with statutory requirements and requirements imposed by rule of the State Board of Education under specific statutory authority that relate to: (A) reporting data through the Public Education Information Management System (PEIMS); (B) the high school graduation requirements under Section 28.025; or (C) an item listed in Sections 7.056(e)(3)(C)-(I) that applies to the district; (2) the effectiveness of the district's programs for special populations; [and] (3) the cost-effectiveness of the district's services for students at risk of dropping out of school, as described by Section 29.081; and (4) the effectiveness of the district's career and technology programs. (c) The agency shall evaluate against state standards and shall, not later than August 1 of each year, report the performance of each campus in a district and each open-enrollment charter school on the basis of the campus's performance on the indicators adopted under Sections 39.051(b)(1) through (9) [(7)]. Consideration of the effectiveness of district programs under Subsection (b)(2) or (4) [(3)] must be based on data collected through the Public Education Information Management System for purposes of accountability under this chapter and include the results of assessments required under Section 39.023. SECTION 9. Sections 39.073(a) and (b), Education Code, are amended to read as follows: (a) The agency shall annually review the performance of each district and campus on the indicators adopted under Sections 39.051(b)(1) through (9) [(7)] and determine if a change in the accreditation status of the district is warranted. The commissioner may determine how all indicators adopted under Section 39.051(b) may be used to determine accountability ratings and to select districts and campuses for acknowledgment. (b) Each annual review shall include an analysis of the indicators under Sections 39.051(b)(1) through (7) [(6)] to determine district and campus performance in relation to: (1) standards established for each indicator; (2) required improvement as defined under Section 39.051(c); and (3) comparable improvement as defined by Section 39.051(c). SECTION 10. Section 39.074(e), Education Code, is amended to read as follows: (e) If an annual review indicates low performance on one or more of the indicators under Sections 39.051(b)(1) through (9) [(7)] of one or more campuses in a district, the agency may conduct an on-site evaluation of those campuses only. SECTION 11. Section 39.182(a), Education Code, is amended to read as follows: (a) Not later than December 1 of each year, the agency shall prepare and deliver to the governor, the lieutenant governor, the speaker of the house of representatives, each member of the legislature, the Legislative Budget Board, the state auditor, and the clerks of the standing committees of the senate and house of representatives with primary jurisdiction over the public school system a comprehensive report covering the preceding school year and containing: (1) an evaluation of the achievements of the state educational program in relation to the statutory goals for the public education system under Section 4.002; (2) an evaluation of the status of education in the state as reflected by the academic excellence indicators adopted under Section 39.051; (3) a summary compilation of overall student performance on academic skills assessment instruments required by Section 39.023 with the number and percentage of students exempted from the administration of those instruments and the basis of the exemptions, aggregated by grade level, subject area, campus, and district, with appropriate interpretations and analysis, and disaggregated by race, ethnicity, gender, [and] socioeconomic status, and a student's status as a student at risk of dropping out of school, as defined by Section 29.081; (4) a summary compilation of overall performance of students placed in a disciplinary [an] alternative education program established under Section 37.008 on academic skills assessment instruments required by Section 39.023 with the number of those students exempted from the administration of those instruments and the basis of the exemptions, aggregated by district, grade level, and subject area, with appropriate interpretations and analysis, and disaggregated by race, ethnicity, gender, [and] socioeconomic status, and a student's status as a student at risk of dropping out of school, as defined by Section 29.081; (5) a summary compilation of the progress [overall performance] of students at risk of dropping out of school, as defined by Section 29.081(d), including the composite performance measure for at-risk students developed under Section 29.093(b)(1) and information described by the academic excellence indicators under Sections 39.051(b)(8)-(10), provided statewide and aggregated by district, on academic skills assessment instruments required by Section 39.023 and any other assessment instrument required by the commissioner [with the number of those students exempted from the administration of those instruments and the basis of the exemptions, aggregated by district, grade level, and subject area], with appropriate interpretations and analysis, and disaggregated by race, ethnicity, gender, and socioeconomic status; (6) a summary analysis, provided statewide and by district, of the cost-effectiveness of the district or open–enrollment charter school in providing services to students at risk of dropping out of school, as described by Section 29.081, as measured by the cost-outcome analysis methodology developed under Section 29.093; (7) an evaluation of the correlation between student grades and student performance on academic skills assessment instruments required by Section 39.023; (8) [(7)] a statement of the dropout rate of students in grade levels 7 through 12, expressed in the aggregate and by grade level, and a statement of the completion rates of students for grade levels 9 through 12; (9) [(8)] a statement of: (A) the completion rate of students who enter grade level 9 and graduate not more than four years later; (B) the completion rate of students who enter grade level 9 and graduate, including students who require more than four years to graduate; (C) the completion rate of students who enter grade level 9 and not more than four years later receive a high school equivalency certificate; (D) the completion rate of students who enter grade level 9 and receive a high school equivalency certificate, including students who require more than four years to receive a certificate; and (E) the number and percentage of all students who have not been accounted for under Paragraph (A), (B), (C), or (D); (10) [(9)] a statement of the projected cross-sectional and longitudinal dropout rates for grade levels 9 through 12 for the next five years, assuming no state action is taken to reduce the dropout rate; (11) [(10)] a description of a systematic, measurable plan for reducing the projected cross-sectional and longitudinal dropout rates to five percent or less for the 1997-1998 school year; (12) [(11)] a summary of the information required by Section 29.083 regarding grade level retention of students and information concerning: (A) the number and percentage of students retained; and (B) the performance of retained students on assessment instruments required under Section 39.023(a); (13) [(12)] information, aggregated by district type and disaggregated by race, ethnicity, gender, [and] socioeconomic status, and a student's status as a student at risk of dropping out of school, as described by Section 29.081, on: (A) the number of students placed in a disciplinary [an] alternative education program established under Section 37.008; (B) the average length of a student's placement in a disciplinary [an] alternative education program established under Section 37.008; (C) the academic performance of students on assessment instruments required under Section 39.023(a) during the year preceding and during the year following placement in a disciplinary [an] alternative education program; and (D) the dropout rates of students who have been placed in a disciplinary [an] alternative education program established under Section 37.008; (14) [(13)] a list of each school district or campus that does not satisfy performance standards, with an explanation of the actions taken by the commissioner to improve student performance in the district or campus and an evaluation of the results of those actions; (15) [(14)] an evaluation of the status of the curriculum taught in public schools, with recommendations for legislative changes necessary to improve or modify the curriculum required by Section 28.002; (16) [(15)] a description of all funds received by and each activity and expenditure of the agency; (17) [(16)] a summary and analysis of the instructional expenditures ratios and instructional employees ratios of school districts computed under Section 44.0071; (18) [(17)] a summary of the effect of deregulation, including exemptions and waivers granted under Section 7.056 or 39.112; (19) [(18)] a statement of the total number and length of reports that school districts and school district employees must submit to the agency, identifying which reports are required by federal statute or rule, state statute, or agency rule, and a summary of the agency's efforts to reduce overall reporting requirements; (20) [(19)] a list of each school district that is not in compliance with state special education requirements, including: (A) the period for which the district has not been in compliance; (B) the manner in which the agency considered the district's failure to comply in determining the district's accreditation status; and (C) an explanation of the actions taken by the commissioner to ensure compliance and an evaluation of the results of those actions; (21) [(20)] a comparison of the performance of open-enrollment charter schools and school districts on the academic excellence indicators specified in Section 39.051(b) and accountability measures adopted under Section 39.051(g), with a separately aggregated comparison of the performance of open-enrollment charter schools predominantly serving students at risk of dropping out of school, as defined by Section 29.081(d), with the performance of school districts; and (22) [(21)] any additional information considered important by the commissioner or the State Board of Education. SECTION 12. Section 39.203(b), Education Code, is amended to read as follows: (b) The annual financial management report must include: (1) a description of the district's financial management performance based on a comparison, provided by the agency, of the district's performance on the indicators adopted under Section 39.202(b) to: (A) state-established standards; and (B) the district's previous performance on the indicators; [and] (2) the district's composite performance measure and results of the district's cost-outcome analysis provided by the agency as computed under the cost-outcome analysis methodology under Section 29.093 for students at risk of dropping out of school, as described by Section 29.081; and (3) any descriptive information required by the commissioner. SECTION 13. Not later than the 2005-2006 school year, the Texas Education Agency shall include, in evaluating the performance of school districts, campuses, and open-enrollment charter schools under Subchapter D, Chapter 39, Education Code, performance data beginning with the 2004-2005 school year for students at risk of dropping out of school, as described by Section 29.081, Education Code, for purposes of Section 39.051(b)(8), Education Code, as added by this Act. SECTION 14. Except as otherwise provided, this Act applies beginning with the 2005-2006 school year. SECTION 15. This Act takes effect September 1, 2005.